Purcells' Mincon stake could be valued at €120m
Upcoming IPO will raise €50m for company
Shannon-headquartered mining group Mincon could be valued at close to €200m when it floats on the Irish stock market on Friday, according to well-placed sources.
This will catapult two families into the ranks of Ireland's wealthiest people. Around 80 per cent of the company's shareholding is held by founder Patrick Purcell's family through their Kingbell vehicle. Based on proposed valuations, this could see the Purcell stake worth about €120m.
The remaining 20 per cent of the company is owned by chief executive Kevin Barry and his family. Their stake will be worth around €40m after the float on Dublin's ESM or Emerging Securities Market. The specialist firm will also list on London's AIM market.
The Purcell and Barry families are not selling shares in the IPO, and are prevented from offloading shares under a two-year lock-in agreement. However, they will share in a special €15m dividend, prior to the flotation.
Mincon, which was set up by Purcell in 1977, is planning to raise €50m in the biggest IPO on the Irish stock market since 2007, when it lists this week. Mincon is to use the proceeds from the capital raised to fund a number of acquisitions over the next two years. It has already identified a number of potential targets.
Advisers Davy stockbrokers – also the company broker – is finalising pricing for the new share issuance this weekend. It is understood that the company, headed by Kevin Barry, has been on an investor roadshow in Paris, London, Chicago and New York in recent days, as it pitches to institutions.
Mincon is chaired by former Eircom finance chief Peter Lynch, who heads up investment firm Prime Active. He is joined on the board by former ESB boss, Padraig McManus, now chairman of Eircom.
The Clare-based rock drilling firm is best known for its role in rescuing the Chilean miners trapped underground for 69 days in the Copiapo mine. Mincon equipment played a pivotal part in the successful rescue.
The previously low-profile Mincon has been a spectacular growth story, with recent financials showing revenues rising 53 per cent last year to €63.1m. Pre-tax profits also jumped 17 per cent to €13.2m.
After almost six years of inactivity, a number of Irish companies have advanced plans to float in recent weeks, including the €400m Globoforce, medical devices firm Creganna and the Smurfit-backed Gameaccount.